Defending Tether- Will Tether Collapse Controversy Explained

Published by bizcon on

Jack Kenny
Tether is fine. There is nothing wrong with what they were doing. The entire principle of the coin is to print more tethers as more people invest in them. People are buying the tethers for $1 so ofcourse the company can afford to back each tether by $1 because when you buy the tether YOU PAY THE COMPANY $1. What is the problem here. How could they possibly not afford to do this. As for the extra $30M, $30M is chump change for a multi billion dollar currency. They would have earned profits by investing all the $ they are holding in order to back up the tethers. Normal Banks accept losses like this all the time when their security fails and customers don’t take proper care of their pins, etc.
Show less

View all 11 replies

Hyabusa
Why’s ur volume so low? It’s very difficult to hear anything u saying….VOLUME bro
View reply
Tens of DU
One day we won’t need to link the value to fiat because fiat won’t exist =)
West Oz Cards
Tether actually states on its website that it has NO legal obligation to trade back your Tether for real currency. That’s extremely alarming.
View reply
Grant Huie
You’re the kind of youtuber where you need to look for the real channel because your sub to quality ratio is way out of wack! Great job man just subscribed and turned on notifications, keep it up.
Tens of DU
It doesn’t matter if Tether is “backed” by the US Dollar. It is better if they aren’t.
View reply
wadec333
The world runs on fractional reserve banking. The US regulations stipulate that banks must hold just 7% of a given loan (typically). This allows for greater liquidity and growth but makes catastrophic collapses possible if people panic and a whole bunch of people want to withdraw funds simultaneously. Then they have the federal reserve print money as needed to keep the inflation rate where they want it. If you understand how the banking system works then you understand that Tether is merely acting in precisely the same manner (necessarily). I’m not saying fractional reserve is a good system – I’m actually opposed to it – but this is standard practice in the banking world.
Categories: Uncategorized

0 Comments

Leave a Reply

Related Posts

Uncategorized

Learning in Raw- Daily Visit to Take Gems Out of Learning Scribbles

><><><><><><>< Monetize Your Site More Effectively <><>><><><><><><><><><><><><><> AGENDA:   paste Affiliate Codes of CJ & Cuelinks on flitmart It looks like infolinks.com and viglink.com are better substitute of Cuellinks Adsense>Media.net>Infolinks>Viglink>cuelink    >>>>> Ad provideers scale and Size Read more…

Featured Video Play Icon
Uncategorized

LocalBitcoins Bitcoin ATM version A3

LocalBitcoins.com Published on 27 Aug 2014 Buy and sell bitcoins with the LocalBitcoins ATM. richardtrenes8 months ago I will buy one and place them here in Southern Spain in the next few weeks REPLY HydroTekZ3 Read more…

Featured Video Play Icon
Uncategorized

How To Withdraw Cash From A Bitcoin ATM

Bitnational Published on 11 Jul 2017 How to withdraw cash from one of our Bitnational Bitcoin ATMs. www.bitnational.com Rohit Kumar1 month ago Who all came here for Nicole? REPLY Ray Casey3 months ago Cult REPLY Read more…